USDJPY continues going down; the Japanese Yen is in demand.
On Thursday morning, the Japanese Yen is in demand after the meetings of American and Japanese regulators. The current quote for the instrument is 107.65.
The US Federal Reserve meeting was over yesterday and the key rate remained unchanged. However, in the comments that followed there were broad hints at possible rate cuts in the near future. The regulator said that the previous several weeks provided additional reasons to soften its monetary policy and more and more members were in favor of reducing the rate.
The Yen is getting more expensive because the USD got under pressure: the more hints at possible rate cuts, the worse for the American currency.
In the morning, another meeting of the Bank of Japan was over. The rate remained the same, -0.1%; the monetary policy didn’t change, but no one expected anything different. However, the regulator warned market players about escalation of global risks, which means that the BoJ sees how they influence the country’s macroeconomic indicators.
In addition to that, Japan reported on the All Industries Activity for May, which added 0.9% m/m, much better than expected, and that’s a very good signal.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.